Assume the following accounts and amounts were reported by a nation last year: Government purchases of goods and services were $5.6 billion; personal consumption expenditures were $41.2 billion; gross private domestic investment amounted to $20 billion; personal savings were estimated at $2 billion; imports of goods and services amounted to $7.5 billion; and the exports of goods and services were $5 billion. (a)Determine the nation’s gross domestic product. (Enter amount in billion. Round answer to 1 decimal place, e.g. 527.5.)Gross domestic product (GDP) $_______ billion

Question

In: Finance

Assume the following accounts and amounts were reported by a nation last year: Government purchases of goods and services were $5.6 billion

Assume the following accounts and amounts were reported by a nation last year: Government purchases of goods and services were $5.6 billion; personal consumption expenditures were $41.2 billion; gross private domestic investment amounted to $20 billion; personal savings were estimated at $2 billion; imports of goods and services amounted to $7.5 billion; and the exports of goods and services were $5 billion.

(a)Determine the nation’s gross domestic product. (Enter amount in billion. Round answer to 1 decimal place, e.g. 527.5.)

Gross domestic product (GDP) $_______ billion

Expert Solution

jeff jeffy answered 2 years ago

1. Assume the following accounts and amounts were reported by a nation last year. Government...

1. Assume the following accounts and amounts were reported by a nation last year. Government Purchases of Goods and Services were US$5.5 Billion; Personal Consumption Expenditure were US$40.5 Billion; Gross Private Domestic Investment amounted to US$20 Billion; Capital Consumption Allowances were US$4 Billion; Personal Savings were estimated at US$2 Billion; Imports of Goods and Services amounted US$6.5 Billion; and exports of Goods and Services were US$5 Billion. Determine the nation’s Gross Domestic Product (GDP)....

Suppose that investment is $160 billion, saving is $140 billion, government expenditure on goods and services...

Suppose that investment is $160 billion, saving is $140 billion, government expenditure on goods and services is $150 billion, exports are $200 billion, and imports are $250 billion. Is the government's budget exerting a positive or negative impact on investment? The government budget balance is a deficit or surplus, which is exerting a positive or negative impact on investment. It decreases or increases the demand for loanable funds, which _______ the real interest rate and ________ investment. A. lowers;...

1) Is the fiscal multiplier higher for government transfers or government purchases of goods and services?...

1) Is the fiscal multiplier higher for government transfers or government purchases of goods and services? How come? 2) Give an example of a government program that qualifies as social insurance. 3) How does an increase in the money supply end up affecting aggregate demand? Explain the process. 4) Name 2 factors that shift aggregate demand and 2 that shift the aggregate supply.

Assume that last month China exported goods worth 350 billion yuan and imported goods worth 331.6 billion yuan.

Assume that last month China exported goods worth 350 billion yuan and imported goods worth 331.6 billion yuan. This month China’s exports are 359.7 billion yuan and their imports are 366.9 billion yuan. Compute China’s trade balance for each of the past two months separately. Over the entire period of the two months, did China experience a trade imbalance? Explain

Calculate the change in government purchases of goods and services necessary to close the gap. Refer...

Calculate the change in government purchases of goods and services necessary to close the gap. Refer to the following example to fill the blanks in the questions. Real GDP equals $100 billion, potential output equals $170 billion, and the marginal propensity to consume is 0.8. Since the multiplier for a change in government purchases of goods and services is _______, an increase in government purchases of $_______ billion will increase real GDP by $70 billion and close the recessionary gap....

A sample of 25 undergraduates reported the following dollar amounts of entertainment expenses last year. 684...

A sample of 25 undergraduates reported the following dollar amounts of entertainment expenses last year. 684 710 688 711 722 698 723 743 738 722 696 721 685 763 681 731 736 771 693 701 737 717 752 710 697 a) Calculate the standard deviation [5] b) Find the semi-interquartile range [5] c) Find the 58th percentile The percent increase in sales for the last 4 years at Combs Cosmetics were: 4.91, 5.75, 8.12, and21.60 Compute the geometric mean percent...

Assume the MPC is 0.6. If government were to impose $20 billion of new taxes on...

Assume the MPC is 0.6. If government were to impose $20 billion of new taxes on household income, consumption spending would initially decrease by A. $12 billion B. $20 billion C. $80 billion D. $8 billion

Increases in government purchases of goods and services, G, and cuts in taxes, T, can have...

Increases in government purchases of goods and services, G, and cuts in taxes, T, can have a larger effect on aggregate demand. This is called the ____________________________ effect. This effect will be greater, the (higher, lower) the marginal propensity to consume is. (2 points; 1 point each) While an increase in G or a cut in T, by raising incomes and the demand for money, also raise interest rates and reduce investment spending. This effect of higher G or lower...

For each of the following transactions determine how the accounts and amounts would be reported and...

For each of the following transactions determine how the accounts and amounts would be reported and on which financial statements. 1. Petty Corp. purchased guitar amplifiers to be used for concert performances. The total cost was $50,000, and the company expected to depreciate them over five years, using the straight-line method. They were purchased on July 1, 2017, and the company’s fiscal year ends December 31. What adjusting journal entry must be made at year-end? What is the impact on...

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the...

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016. Accounts Payable $ 840 Accounts Receivable 880 Accumulated Amortization 500 Accumulated Depreciation 1,130 Allowance for Doubtful Accounts 30 Cash and Cash Equivalents 1,030 Common Stock 470 Deferred Revenue 1,980 Equipment 7,530 Income Taxes Payable 30 Notes Payable (long-term) 2,670 Notes Receivable (long-term) 250 Prepaid Rent 270 Retained Earnings 7,170 Service Revenue 490 Short-Term Investments 3,950 Software 910 Prepare a...